Over Three Decades of Industry-led Collaborative Research Consortium for Advanced Management - International

Over Three Decades of Industry-led Collaborative Research

Consortium for Advanced Management - International

Global Leadership in Cost, Process and Performance Management


CAM-I’s international consortium consists of:

Public and Private Organizations

Government

Professional bodies

Software companies, System providers

Academia

Who work in collaboration to solve current organization problems and critical business issues that are common to the group

CAM-I’s Participation



How CAM-I Createsthe Body Of Knowledge

Existing Knowledge and Current Trends on Cost, Process and Performance Management

AcademicResearch

Subject Matter

Experts

PractitionerExperience

Program/Interest Group/ Project Collaboration

CAM-I Body of Knowledge

Dissemination



CAM-I Participating Companies

• ABS Consulting, Inc. • ATI• Avnet, Inc. • Baker Tilly Mexico• Boeing Company • CALIBRE Systems • Certified Management Accountants -

Canada• Decimal• Department of Labor• Executive Management Associates• Grant Thornton LLP• IBM Corporation• Institute of Cost and Works

Accountants of India• Korea Management Accounting

Association• MEDRAD Inc.

• Navistar• On Semiconductor• Pilbara Group Inc.• Pinnacle West• Regence • Rockwell Collins• Royal Australian Navy• SAP AG• SAS Institute• Shell Oil Company• Tata Consulting Services Limited• U. S. Air Force• U. S. Coast Guard• U. S. Marine Corps• U. S. Patent and Trademark Office• VEN International CLG• Whirlpool Corporation



CAM-I

Current Initiatives:

Target Costing Best Practices Business Intelligence Process Based Management – Roadmap, Assessment and Implementation Risk Management Performance Management Planning and Budgeting Operational Data and Financial Management Assessments Armed Services approach on Cost, Performance Management, Lean Six Sigma

• Industry-led collaborative research consortium over 35 years• Internationally recognized for advancing Cost, Process and Performance

Management practices providing our members with techniques, methods, tools that are applied in their organizations.



CAM-I Initiatives Touch Points

PerformanceManagementPerformanceManagement

Cost Management

Cost Management

Process Based Management


Business IntelligenceBusiness

Intelligence

PerformanceManagementPerformanceManagement

Logical Enterprise Data Framework Standards



CAM-I Exploratory Groups

• Logical Enterprise Data Framework Standards - CAM-I’s vision is to create data interdependence and a uniquely logical integration of data and organizations

• Health Care Supply Chain

• Sub Project for Process Based Management, multi-dimensional reporting where Risk Management, Value Statements and Process Based Management Statements presented side by side with Income Statements and Balance Sheets.

• Environmental Management Accounting (Green Sustainment)

• Next generation Planning and Budgeting for today’s environment



CAM-I Initiatives

• Target Costing – Providing a vehicle for sharing target costing best practices. The current focus is to develop a series of “how to” technical bulletins on extending target costing to the supply side. The first is “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process Model”. The second will cover leading practices for accessing manufacturing cost data and recommendations for the future on integrated costing systems across the supply chain. Chair: Tami Capperauld Phone 425-234-4458 or [email protected] in progress -

Data dictionary for manufacturing models Technical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost

Process Model”

• Risk Management - Working on basic taxonomy of risk management terms and phrases with a follow-on project of developing a practical applications and implementation guide. Chair: Frank Wood Phone 202-372-4564 or [email protected] in progress -

A model for an approach to integrating risk, cost, and performance management; an implementation methodology for that approach, key success criteria and pitfalls to avoid, and new elements of risk management to consider.



CAM-I Initiatives

Operational Data & Financial Measurement Assessments

Provide assessment criteria for operational data required for relevant operational planning & control & good cost measurement. Align with Baldridge assessment approach. Provide assessment criteria for cost measurement that is integrated with and driven from the operational data assessment. Chair: George Millush Phone 248-637-8665 or [email protected] in progress -

Financial Measurement Assessments

– The first assessment addresses the quality of operational data used for planning and operational execution. A significant portion of the total combined point value in the scoring instrument will be assigned to this operational data.

– The second assessment addresses the quality of the existing cost measurement methodology and its ability to support strategic decisions.



CAM-I Initiatives

• Business Intelligence – This working group will be developing a roadmap to assist organizations improve and mature their Business Intelligence efforts. Chair: Shobik Chaudhuri Phone 703-637-2728 or [email protected]

• Performance Management – Finalizing a practical performance management framework maturity model that will enable the assessment of public, non-profit and private sector organizations level of maturity and apply elements of a performance management. Chair: Derek Sandison Phone 905-855-0765 or [email protected]

Deliverables in progress –

First phase of Performance Management Maturity Levels



CAM-I Initiatives

• Planning & Budgeting – This group is looking at a much bigger picture that will include private and public sectors. They are examining the current and future trends for budgeting and planning which will include Beyond Budgeting. One of their other objectives is to develop a “WIKI”. Chair: Alan Stratton Phone 503-590-3911 or [email protected] in progress -

Planning & Budgeting Wiki

Next Generation Planning and Budgeting



CAM-I Initiatives

• Armed Services Cost & Performance Management – Published report on essence of performance and cost management principles and concepts in the five armed services in 2005. Currently working on best practices to be published in Fall 2008. Chair: Bob Misch Phone 703-637-3042 or [email protected]

Deliverables in progress -

Report on the survey results for Lean Six Sigma and Continuous Process Improvement (Dec 2008)

A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March

2009)



Armed Services Cost & Performance Management

Questionnaire

Objective: Utilizing the Cost Management Maturity Model (CM³) framework, conduct an assessment of the current Army cost management culture ("As-Is" state). Use findings to establish enterprise-wide targets and action items ("To-Be" vision).

Procedures: The CM³ framework consists of nine Elements. For each of the Elements / Sub-Elements, please read the five Maturity Level narratives along with the associated measures, then select a Level that most closely describes the "As-Is" condition for the Army. Add a short narrative in the Justification / Evidence block to support your selection. Only assess elements where you have experience and knowledge to select an appropriate level; however, make comments in the block if you are not able to make an assessment.

General Description of Elements: Process Integration, Accountability / Performance Management, Leadership Commitment, Workforce Competencies, Workforce Acceptance / Attitude, Enterprise Perspective, Data Quality, Knowledge Sharing/Best Practices, Integration with Quality/ Productivity Improvement




Roadmap Assessment

Action steps

Pathways to PBM

PBM Stages

Suggested Action plans

Gaps in implementation

Maturity of PBM - Pathway - Stage - CategoryImplementation

of Action Plans



Awareness

Commitment

Engagement

ManagingProcesses

Integration

Embed

Optimization

DiscoveryDiscovery

FoundationFoundation

TransitionTransition

TransformationTransformation

InstitutionalizationInstitutionalization

RealizationRealization

Minimal process effortsPBM Assessment completed

Pockets of process success

PBM implementation strategy

Executive support

Process governance

Classification framework

Process teams launched

Process teams operational

Managing individual processes

Goals & objectives based on process

Process Council assumes ownership of PBM

Cross process integration and measurement

PBM transformation is part of goals & objectives

PBM goals & objectives are part of the organization’s culture

Alignment of integrated processes and strategy

Process performance tied to incentives

PBM extended externally

Processes are primary structure supported by functions

CI initiatives integrated, prioritized and resourced by strategy

Management of individual process(s) Process Based Management

Figure 2 – Roadmap to Process Based Management

Source: CAM-I/ATI PBM Program 2006



University and Professional Affiliations

• Kellogg (Northwestern)

• The University of Akron

• Babson College

• Gutenberg University

• Naval Postgraduate School

• US Coast Guard Academy

• Arizona State University

• Great Lakes Institute of Management – Chennai, India

• HEC Montréal

• Institute of Management Accountants

• Metropolitan State University

• PDES, Inc

• Texas State University

• University of Texas, Austin

• Wake Forest University

• University of Virginia

• Yonsei University – Seoul, Korea and Korea Economic Daily



Deliverables

Delivered –

Blue Book - Marginal Analytics & Resource Consumption Accounting The Armed Services Interest Group Phase II Lean Six Sigma Survey

In Progress –

Management Accounting Guidelines on Process Based Management (Feb 09)

Target Costing Data dictionary for manufacturing modelsTechnical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process Model”

Risk Management A model for an approach to integrating risk, cost, and performance management; an implementation methodology for that approach, key success criteria and pitfalls to avoid, and new elements of risk management to consider.

Performance Management Survey (CAM-I/CMA conference 2008)

Levels and maturity of Performance Management Armed Services Interest Group -

A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March 2009)



Next CAM-I Members Meetings

• March 8th -11th 2009 – San Diego, CAKeynote speaker – Dave Clifton USMC status

Performance Management Maturity map deliverable

• June 8th – 10th 2009 – Austin, Texas

• September 7th – 10th 2009 – Washington, DC

• December 7th to 9th, 2009 – San Antonio, Texas



CAM-I Events

• The next CMA/CAM-I conference

Calgary – 14th to 16th October 2009



CAM-I Publications



Resource

Decision Domains

Process

Product

Customer/Market

Strategic Management Processes Activity-Based Cost Management

Capacity Management

Target Costing

Closed Loop Planning and Budgeting

Extended Enterprise

Process Management

Integrated Performance Management

Risk Management

Asset Management

CAM-I Strategic Management Process Model



Resources

Cost Objects(Products, Services

or Customers)

PerformanceMeasures

Activities

Activity-Based CostingThe CAM-I Cross

Cost Drivers(Causes of Cost)

CAM-I (Consortium for Advanced Management-International)



CAM-I Futures ForumDr. Bala Balachandran – Northwestern - Kellogg, Great Lakes Institute of

Management

George MillushChrysler – (Retired)

Keith HallinWhirlpool Corporation

Ashok G. VadgamaCAM-I

President and Treasurer

Srikant SastryGrant Thornton

Chairman

Ms. Nancy ThomasCAM-I

Member Services

CAM-I Board of Directors

Jennifer HolmesNavistar

Todd ScalettaCMA Canada



Ashok G. Vadgama President

[email protected]: (512) 617-6428

Contacts

Nancy Thomas Member [email protected]

Phone: (817) 426-5744

Documents

Over Three Decades of Industry-led Collaborative Research Consortium for Advanced Management - International